UK Daily Mail
Saturday, September 20, 2008
Almost exactly seven years ago Al Qaeda terrorists targeted their hijacked planes into the Twin Towers at the heart of New York’s financial centre — and the world was transformed.
There were no deaths this week, but the effects of the carnage on the financial
markets will be far more profound and destabilising than the 9/11 atrocity.
For almost all of us, it will, I predict, be a change for the worse, and for a large
minority the consequences will be extremely distressing.
The Western world — Britain, Europe and the U.S. — has moved from excess to
austerity overnight. This week’s financial typhoon will savagely impact living
In due course, it will topple governments and lead to a permanent transfer of
economic and political power from Europe and America to the emergent and, in some
cases, such as China, semi-barbarous economies in the East.
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I know I will be accused of being unnecessarily apocalyptic and irresponsibly
negative, but I believe that the greatest mistake we can now make is to
downplay the seriousness of the situation and bury our heads in the sand.
The seismic events which have seen the near-destruction of the investment banking sector and the collapse of insurance giant AIG are on the scale of the Great Crash of 1929.
That was such a disaster because it created conditions for the emergence of fascism in continental Europe and then World War II.
Although it is hard to predict the consequences, we should expect ramifications of equal significance — including the re-emergence of violent Far Right parties across the globe.
Some experts were talking this week as if the financial crisis was nearly over. They
could not be more wrong. The downturn has only just begun — and for most citizens
uninvolved with finance the consequences have not been felt at all.
This article was posted: Saturday, September 20, 2008 at 4:02 am